Mr. Sensitive

June 27, 2011

FSX Third Quarter Changes

Filed under: Uncategorized — lbej @ 15:31

Zondro, the doggier of my two dogs, is having his company bought out from under him by some British suckers who obviously did their due diligence remotely.  The original price, $680 million or so, was indefensible from the outset, and the market never believed that the transaction would go through on those terms.  Surprise! the market was right, but the 30% discount to the original offer still implies a final price tag of $480 million.  If I were putting together a deal sheet on Zondro, it would read something like:

  • Reasonably fast;
  • Sits on command almost half the time;
  • Can lick his own butthole.

Does that add up to $480 million?  I was thinking more like $48, but what do I know?–I quit my high-paying management gig to change poopy diapers and analyze imaginary stock indices.  At any rate, the revised buyout of ZRAN is scheduled to close sometime in the third quarter, so it’s time to make a move.  This was one of the ticker searches I turned over to Katie, and she came up with so many options that it made me feel like she ought to have been doing this in the first place.  Of course, she has an actual job that would preclude her wasting time in such a regimented way, so I’ll hold on to the reigns for now.  After reviewing Katie’s suggestions, I’ve decided on Quiksilver, Inc., a sporting apparel and accessories manufacturer focusing on boardsports, something that I’m certain is not a word despite being a market segment.  The ticker is ZQK (leaving the focus on speed—quick instead of ran) and it trades at $4.50, in the middle of its 52-week range of $3.77 – $5.70.  With 165 million shares outstanding, this yields a market cap of about $750 million, which fits in nicely with the small- and mid-cap style of the FSX.  In addition, I like that Zondro will be competing in the same industry as Lulu—athletic apparel—albeit in different niche markets.  He hates that cat.

Now we come to me.  It was interesting to me how differently Katie and I went about looking for a substitute for the much-maligned Lee Enterprises.  We went through the same exercise independently, and Katie searched for tickers based on words like awesome, great and perfect, whereas I went for concepts such as stupid, fat, and loser.  It makes me think I have been sitting on my angry chair a little more frequently than is healthy.  Katie did make a suggestion I really liked, though: Microstrategy, ticker symbol MSTR.  It resonates with me on a number of levels.  First, MSTR could symbolize Mr. Sensitive, which is what I am in addition to being the title of this blog.  Second, it could symbolize mastery, which is what I am trying to achieve with respect to my stupid, fat self.  Or it could symbolize mastermind, not in the sense of a James Bond villain or that loser from the Hellfire Club, but the sort of fellow that Dr. Dre cautions stupid punks not to f*** with, the guy who disposes of whatever he can’t abide or control.  Even if I’m not that guy, I wouldn’t mind having him in my repertoire, and I swear that it feels like I don’t.  I also like that MicroStrategy describes itself as providing ‘business intelligence software and related services,’ because I don’t really know what that means, and I could say much the same thing about myself at this moment.  MSTR trades near its 52-week and all-time high of $160, but sports a very manageable market capitalization of $1.7 billion owing to a miniscule float of eight million shares.

So that means goodbye to LEE, right?  Not so fast, my friend.  I’m adding MSTR and keeping LEE, assigning half my standard weighting to each.   A dual listing?  How irresolute, you say—just pick one, you pansy.  But I say I need both.  If I truly seek mastery of myself, can I abandon the very past I intend to master?  Is there any way to frame that sentiment so that it doesn’t sound like the origin story from a kung fu movie?  MSTR and LEE.  I won’t jettison LEE, but I’m not willing to be limited by it, either.  Am I hedging my bets?  Absolutely.  But as I came to my fascination with financial markets by way of my former occupation as a risk manager, hedging comes naturally to me.  You cap potential gains in order to limit probable losses—otherwise you’re just gambling.  And I hate gambling.

The Family Stock Index will be rebalanced as of the close this Thursday, with ZRAN being dropped and ZQK and MSTR being added.  Unless I change my mind.

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6 Comments »

  1. I’m glad my work was helpful. And now you can have a new (or old) theme song – Mr. Lee! Because that’s what everyone obviously thinks of when they see MSTR and LEE together in a sentence. Some sample lyrics for you (so you can see how it’s clearly your theme song):
    One, two, three, look at Mr. Lee
    Three, four, five, look at him jive

    I met my sweetie
    His name is Mr. Lee
    He’s the handsomest sweetie
    That you ever did see

    Come on Mr. Lee and do your stuff
    ‘Cause you’re gonna be mine
    Till the end of time

    Comment by Katie E. — June 27, 2011 @ 16:32 | Reply

  2. Today’s unsolicited advice from the sister in law: You should try to work on seeing yourself through Katie’s eyes.

    Comment by Lisa Lamb Machi — June 28, 2011 @ 07:56 | Reply

    • Ah, but so much of the light Katie sees is reflected. I’ll convince her of that one day, and then I’ll have accomplished something. It’s a good thing that I have the rest of my life to do it.

      Comment by lbej — June 28, 2011 @ 13:57 | Reply

      • What a nice husband.

        Comment by Katie E. — June 28, 2011 @ 14:50

  3. You and Katie are my favorite couple ever.
    When I saw your ticker, my first thought was Monster. Remember when Marcus used to say, “Good monster. Bad monster. Monster monster,” with corresponding fangs? I hope so or I must sound insane. Anyway, I think you are a good monster. A master monster.

    Comment by Sis — June 28, 2011 @ 14:59 | Reply

    • Yes he did do that! That is your best rememberment ever!

      Comment by lbej — June 28, 2011 @ 17:55 | Reply


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